The comparative balance sheets of Canton Movie Theater Company at June 30, 2016, and 2015, reported the following:

Canton Movie Theater's transactions during the year ended June 30, 2016, included:

Requirements
1. Prepare Canton Movie Theater Company's statement of cash flows for the year ended June 30, 2016, using the indirect method to report cash flows from operating activities. Report noncash investing and financing activities in an accompanying schedule.
2. Evaluate Canton Movie Theater's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation.

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A1 June 30 2016 2015 Current assets: 4 Cash and cash equivalents 5 Accounts receivable $45,400 $14,500 22,200 63,800 61,200 3,1002,200 14,500 nventories 7 Prepaid expenses 8 Current liabilities 9 Accounts payable $57,30055,600 32,70046,700 9800 10,900 Accrued liabilities ome tax payable 12 Acquisition of land Proceeds from sale of long- by issuing note payable..$104,000 term investment. S15,500 15,200 28,000 Cash purchase of building.... 44,000 54,000 5,000 Depreciation expense ... Payment of cash dividend Cash purchase of Net income 34.600 Issuance of common stock for cash Stock dividend. Issuance of long-term note 10,000 12,000 payable to borrow cash... 47,000